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We like OXM with the winter season |
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and holidays approaching. |
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Released on Wednesday, November 30, 2011, 9:00 PM ET
Pittsburgh, PA (SpeculatingStocks) -Oxford Industries, Inc. Common (NYSE:OXM) is a clothing apparel company which operates internationally with a market capitalization of around $625 million making it a mid to small cap. stock. Recently the firm has had a down grade in its market performance to neutral, which has caused its price to drop dramatically in the short-term to $33.61 per share (4:00 PM EST, November 25th, 2011). But we don’t think that Oxford is going to perform not just at market, but potentially above it.
Already the firm is showing substantial gains from previous years, leading with a strong diluted $1.47 per share earnings—which doesn’t even include the 4th quarter—compared to the diluted EPS of 2011 which came to a total of $1.19 per share. Yes the last quarter had an EPS which was down from the prior quarter, but it still came in around last year’s data.
Oxford’s financials are strong as well. With a current ratio of 1.96 and a quick-acid test ratio of 0.81, the firm could expect to meet its obligations immediately with little trouble. And has a nice operating cash flow of approximately $47 million, and a positive overall cash flow of approximately $38 million—a status they have maintained over the past several quarters.
OXM as a stock is not half bad either, holding an EPS of $1.43 per share and a price times earnings of 25.89 the stock is well valued. OXM also has a beta of 2.18 and a dividend that returns 1.41% of average price annually. But for some reason, OXM has traded down several dollars per share recently, and would qualify as a steal, as there seems to be little reason for its recent drop off in price. Purchasing now could prove to be a benefit if the price rebounds in the future and reaches normal levels, in which case you as the investor would have a reserve to hedge against losses or a bonus in addition to any further appreciation. According to the MACD momentum and the fast stochastic analysis, the price of the stock could continue to breech lower, although, in either case the price movement of the stock seems to have stabilized, and might begin to move positively shortly.
We like the company, we like the fact that they are in the apparel name-brand industry—especially with the winter season and holidays approaching—and we like the current position of the stock. What’s not to like?
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